Archive for Offer In Compromise

Revised Offer in Compromise Procedures—Not Current on ALL Tax Filings No OIC

The IRS is taking a close look at the Offer in Compromise program recently.

On March 30, 2016 we posted IRS Revises Offer in Compromise Booklet and Application where we discussed that the 2016 revision to Offer in Compromise Booklet Form 656-B will is available for download. The booklet contains necessary forms and instructions for submitting an Offer in Compromise. Use of earlier versions may result in a delay in the processing of Offer applications.

Now the IRS has released its new policy that effective immediately, the IRS will return newly filed Offer in Compromise (OIC) applications in cases where the taxpayer has not filed all required tax returns (e-News for Tax Professionals 2016-19- May13, 2016). Any fees included with the OIC will also be returned.

Read more

Everything You Wanted to Know About an Offer in Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:

• Ability to pay;
• Income;
• Expenses; and
• Asset equity.

The IRS will generally approve an offer in compromise when the amount offered represents the most which they can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. Read more

Meet Tax Experts At TaxConnections...